OPQ Ltd. had the following transactions in March 2024:

• March 1: Purchased inventory on account for $35,000.
• March 5: Sold goods costing $17,500 for $26,000 on account.
• March 10: Paid $1,800 for rent.
• March 15: Collected $14,000 from customers on account.
• March 20: Paid suppliers $15,000.
• March 25: Declared and paid dividends of $3,000.

Requirements:

1. Record the journal entries for the transactions.
2. Post the journal entries to the ledger.
3. Prepare a trial balance as of March 31, 2024.
4. Prepare an income statement for March 2024.
5. Discuss the impact of rent expenses on the company’s operating income.